Anglo extends Philippine find

Vancouver — Delineation drilling on the Boyongan prospect in the Philippines continues to churn out impressive copper-gold values.

Partners Anglo American (AAUK-Q) and Philex Gold (PGI-V) have six rigs turning, and so far have outlined a 500-by-300 metre zone of mineralization grading greater than 1% copper-equivalent with a broader, 850-by-450-metre area averaging greater than 0.5% copper-equivalent.

The latest results have extended mineralization to the south. Highlights include the following:

• Hole 49 — 508 metres grading 0.28% copper and 0.47 gram gold per tonne at 296 metres down-hole.
• Hole 50 — 590 metres averaging 0.51% copper and 0.66 gram gold at a down-hole depth of 94 metres. Included in this section was a higher-grade portion running 0.88% copper and 1.64 grams gold over 136 metres.
• Hole 51 — 579 metres grading 0.36% copper and 0.6 gram gold from 359 metres down-hole, including 189 metres of 0.43% copper and 1.08 gram gold.
• Hole 52 — 278 metres grading 0.51% copper and 1.2 grams gold within an 887-metre zone grading 0.31% copper and 0.59 gram gold.
• Hole 53 — 258 metres grading 0.73% copper and 1.13 gram gold at 168 metres down-hole.
• Hole 54 — 247 metres grading 0.3% copper and 0.21 gram gold at 360 metres down-hole.
• Hole 55A — 330 metres grading 0.55% copper and 0.92 grams gold at 162 metres down-hole.

Drilling is under way on hole 56, with the top 302 metres having already returned a 214-metre section running 0.96% copper and 0.13 gram gold at 88 metres down-hole.

Says Chief Executive Officer Gerard Brimo: “We’re pleased to see the good assay results from holes 50 and 56, which extend the mineralization southeast of the Eastern zone, as well as results from 53 and 55, which extend the mineralization south of the Western zone. Hole 51 has penetrated the Northwest sulphide zone at depth and we look forward to intensified drilling of this target in the year ahead.”

Hole 57 is currently drilling 100 metres north of hole 52; it cut the mineralized zone from 200 metres to its current depth of 611 metres.

Hole 58, collared 100 metres east of hole 56, cut argillzed andesite and basalt from 70 metres through to the end of the hole at 511 metres.

Moving 100 metres south of hole 49, hole 59 cut mineralized diorite breccia from 215 metres to its current depth of 341 metres, while hole 60 is drilling 200 metres north of hole 51, and hit mineralized breccia from 189 metres down to its current depth of 498 metres.

Holes 61 and 62 have both cut mineralization and are currently drilling 100 metres west of hole 55 and 100 metres east of hole 50, respectively.

Having failed to cut any significant mineralization south and west of Boyongan, Philex suspended reconnassiance drilling after eight holes. However, exploratory work is expected to resume next year.

Anglo American discovered the covered deposit in September 2000, when hole 6 returned a 365-metre intercept grading 0.7% copper and 1.9 grams per tonne gold. Subsequent drilling thrughout 2001 continued to yield impressive numbers, including 393 metres grading 1.58% copper and 2.39 grams gold in hole 15 and 896 metres grading 0.49% copper and 1.57 grams gold in hole 18.

Situated on the northeastern side of Mindanao island in the historic Surigao gold district, the project covers part of a north-south-trending Pliocene volcano-magmatic arc, which hosts several known gold mines.

A porphyry deposit hosted by a composite diorite stock, Boyongan was locally affected by a later argillic event, which results in some high grades. The prospect hosts unusually deep supergene oxidation (more than 400 metres locally), which was preserved as a result of being capped by Quaternary sediments and lavas. Malachite, azurite, cuprite and native copper define the oxide zone. Chalcopyrite and bornite dominate the primary copper sulphides.